Cement Industry Analysis in Europe

Europe Cement Industry Outlook from 2023 to 2033

The cement industry size in Europe reached US$ 18,178.4 million in 2022. Over the forecast period, cement demand in Europe is anticipated to rise at 5.3% CAGR. The industry is predicted to increase from US$ 19,026.5 million in 2023 to US$ 31,742.5 million in 2033.

The integration of cutting-edge technology in cement manufacturing is bolstering the industry’s expansion. A favorable industry outlook is also being produced by the growing use of green cement in constructing sustainable and eco-friendly structures that lower harmful emissions and promote environmental health.

The cement industry in Europe is largely concentrated, with several medium- and small-sized key firms coexisting alongside leading players who control a sizable share. Key manufacturers in the cement industry are committed to securing a substantial portion of the industry and avoiding several obstacles.

Cement producers in Europe also enter contracts and agreements with other leading industries to secure long-term material supply and increase profits. Leading manufacturers are conducting research & development to innovate and produce new products to meet the rising demand.

Key Europe Cement Industry Highlights

• Industry to Expand Over 1.7X through 2033

Europe’s cement industry is predicted to expand over 1.7X through 2033, amid a 3.2% increase in expected CAGR compared to the historical one. This is due to the rising demand for public infrastructure and non-residential buildings, such as hospitals and healthcare facilities.

The cement industry in Europe is projected to rise due to rapid population growth and increasing government initiatives for infrastructure development. By 2033, the industry is set to reach US$ 31,742.5 million.

The United Kingdom is the Leading Cement Manufacturer

The United Kingdom is expected to retain its dominance in Europe’s cement industry during the forecast period. This is attributed to the following factors:

• Growth of End-use Industries: The demand for residential buildings has increased as the population is growing. This has surged the demand for cement across Europe. The rising demand for public infrastructure and non-residential buildings, such as hospitals and healthcare facilities, has created a product-consumption industry. As a result, the current trend is rising demand from the expanding construction sector.
• Growing Government Investment: As the population of the United Kingdom grows, the government is taking several initiatives to develop the country's infrastructure and expanding its budget to improve connectivity and enhance logistics. This is expected to uplift cement demand in Europe through 2033.

Historical Europe Cement Industry Outlook Vs. 2023 to 2033 Forecast

Europe cement industry grew at a CAGR of 2.1% between 2018 and 2022. The industry reached US$ 18,178.4 million in 2022. In the forecast period, the cement industry in Europe is set to thrive at a CAGR of 5.3%.

Europe’s cement industry witnessed moderate growth between 2018 and 2022. This was due to a rising awareness of environment-friendly infrastructure.

The acceleration of industrialization and urbanization was a result of the globalization movement and the expansion of developing economies. Consequently, this increased the need for cement as a basic building ingredient in Europe.

The general quality and safety of cement products were enhanced by the creation and implementation of quality standards & regulatory procedures. Growing consumer awareness of environmental issues has prompted the cement industry to prioritize sustainable methods.

It, in turn, has led to an emphasis on cement's dependability in building. The industry's growth trajectory has been determined by initiatives to lower carbon emissions, adopt energy-efficient technology, and investigate alternative raw materials.

Europe’s cement industry has seen a noticeable change toward more environmentally friendly methods in recent years. This involves utilizing more energy-efficient processes, switching to alternative fuels, and developing low & carbon-neutral cement to lessen carbon emissions.

Nikhil Kaitwade

Principal Consultant

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Future Scope of the Cement Industry

Over the forecast period, the cement industry in Europe is poised to exhibit healthy growth, totaling a valuation of US$ 31,742.5 million in 2033. This is due to a combination of several factors, including the rising use of cement in road construction, civil engineering, and others.

High demand for residential and commercial buildings due to population growth is expected to propel the growth of the cement industry in Europe. Investment in research and development is another crucial factor for the growth of the regional cement industry.

Key participants are investing in research & development to develop advanced and innovative products for sustainable development. They aim to develop advanced technologies to cater to the growing demand from end-use sectors.

Investments in research & development also benefits waste and hazardous waste management, which will help with sustainable development. The above factors, coupled with the increasing people's purchasing power, have led to the growing sales of cement for several applications in Europe.

Europe Cement Industry Trends

• In Europe’s cement sector, sustainability is becoming very important. Low-carbon and carbon-neutral cement are being developed as a result of increasing efforts to lower carbon emissions.
• To lessen their reliance on non-renewable resources and improve sustainability, cement producers are progressively utilizing alternative fuels and raw materials, such as waste-derived fuels and industrial by-products.
• The cement industry in Europe is progressively adopting digital technologies, such as automation, artificial intelligence, and the internet of things. Digital solutions are set to be used to increase operational performance, streamline industrial processes, and boost energy efficiency.
• By recycling and repurposing leftover concrete, cement manufacturers are looking for methods to support the circular economy. Using recovered aggregates and adopting technology to repurpose concrete leftover from demolished buildings are two examples of this.
• Concrete with improved strength, durability, and other specific qualities is in high demand. High-rise structures and infrastructure projects are mainly affected by this tendency.

Key Factors Restraining Europe’s Cement Industry Growth

• Robust environmental laws about the carbon footprint of cement manufacturers are set to prevent the cement industry in Europe from growing. There is constant pressure on the sector to cut emissions and implement more environmentally friendly procedures.
• The formation of clinker requires high temperatures, which makes cement making an energy-intensive operation. Rising energy prices and the effects of energy usage on the environment are set to constrain cement manufacturers.
• The price and accessibility of raw materials, such as gypsum, clay, and limestone, is projected to affect the cost of cement production. Changes in the price or scarcity of raw materials are expected to impact the profitability of cement manufacturing.

Country-wise Insights

The table below highlights key countries’ cement industry revenues in 2033. The United Kingdom, Germany, and France are expected to remain the top three consumers of cement in Europe, with expected valuations of US$ 5,795.4 million, US$ 5,177.3 million, and US$ 4,481.8 million, respectively, in 2033.

The table below shows the estimated growth rates of the top five countries. France, the United Kingdom, and Germany are set to record high CAGRs of 6.2%, 5.8%, and 5.0% respectively, through 2033.

The United Kingdom to Remain at the Epicentre of Cement Manufacturing

The United Kingdom’s cement industry size is projected to reach US$ 5,795.4 million in 2033. Over the assessment period, demand for cement in the United Kingdom is set to rise at a 5.8% CAGR.

The United Kingdom has exhibited an increasing understanding of the environmental impact of cement manufacturing in recent years. The country has been researching sustainable techniques and alternative materials to reduce carbon emissions related to cement making. Blended cement and other eco-friendly options are essential in pursuing more ecologically conscious construction methods.

Key enterprises substantially contribute to meeting the cement needs of the United Kingdom’s construction industry. The performance of the construction sector, driven by factors such as rising housing demand, infrastructure investments, and commercial projects, is influencing cement consumption in the United Kingdom.

Booming Construction Sector to Boost Sales of Cement in Germany

The cement industry in Germany is an important part of the country's building industry. In Germany, cement consumption is tightly linked to economic conditions, infrastructure initiatives, and environmental concerns.

Germany is well-known for its modern construction sector and commitment to environmentally friendly building standards. The country has been at the forefront of implementing environmentally friendly technologies in construction, and this trend is continuing in the cement industry. Cement manufacturers in Germany are actively researching & implementing strategies to reduce carbon emissions and improve sustainability.

Heidelberg Cement, Dyckerhoff AG, and Schwenk are the key competitors in Germany’s cement industry. These firms make substantial contributions to meeting the cement demand in Germany. Cement sales in the country are projected to soar at a CAGR of 5.0% during the assessment period.

Increasing Sustainable Construction Techniques Spurring Growth in France

France has been emphasizing environmentally friendly policies and sustainable practices in the construction sector. Regulations aiming at lowering carbon emissions, encouraging the use of alternative fuels, and implementing more sustainable manufacturing techniques are expected to drive the country’s cement industry.

The degree of urbanization and continuing infrastructure-building initiatives are also the key drivers of cement consumption in France. The country’s government is investing in energy, transportation, and other infrastructure projects, which is driving the cement industry's expansion.

The competitiveness of cement producers in France is influenced by technological advancements in cement manufacturing. This includes the creation of more energy-efficient and environmentally efficient processes. The state of the residential housing sector has a direct impact on cement consumption in France.

Building and remodeling operations in the residential sector are further influenced by variables such as borrowing rates, housing affordability, and demographic shifts in France. Over the forecast period, cement demand in the country is set to increase at a robust CAGR of 6.2%.

Category-wise Insights

The below section shows the ordinary Portland cement segment-leading in terms of product type. It is estimated to thrive at a 5.2% CAGR between 2023 and 2033. Based on end-use, the residential and commercial building segment is anticipated to hold a dominant share through 2033. It is set to exhibit a CAGR of 5.1% during the forecast period.

Ordinary Portland Cement to Exhibit Exponential Demand in Europe

Ordinary Portland cement, also known as OPC, is the leading and dominating product type, followed by Portland pozzolana cement (PPC). OPC is the widely consumed cement in several end-use industries in Europe, such as marine and civic infrastructure.

It is also a widely manufactured cement, and because of its high compressive strength, this product is in high demand. Growing end-use industries are favoring OPC as it is suitable for common construction applications. As a result, these factors are likely to boost OPC demand throughout the forecast period.

Demand for Residential and Commercial Buildings to Remain High

Based on the end-use, the residential and commercial buildings segment is expected to lead, followed by civic infrastructure. Growing demand for residential and commercial buildings due to the rapid population growth is expected to propel Europe’s cement industry.

Cement consumption in this end-user segment is high owing to the increasing urbanization and growing population, which necessitates accommodation. Drainage systems, stairs, roofs & walls, foundations, and others are all considered under this segment. As a result, this segment is expected to surge at a CAGR of 5.1% throughout the forecast period.

Competitive Landscape

Europe’s cement industry is consolidated, with leading players accounting for 64.2% share. CEMEX, Buzzi Unicem, CRH PLC, Anhui Conch Cement Co. Ltd., Heidelberg Materials, Duna-Drava Cement, Holcim Ltd., Titan Cement Group, and Vicat Group are the leading manufacturers and suppliers of cement listed in the report.

In order to fulfill end-user demand, key cement firms in Europe are investing in research & development to produce new products and increase their manufacturing capacity. To expand their presence, leading players are directed toward implementing growth strategies such as collaborations, acquisitions, mergers, and facility expansions.

Recent Developments

• In 2022, CRH acquired Barrette Outdoor Living (Barrette), a leading provider of fencing and railing systems for the outdoor living space.
• In May 2023, The Nevyansk Cement Plant invested in equipment modernization to double the plant's capacity.
• In 2023, Cemex acquired a factory close to Madrid, with the intention of better meeting the demands of customers.

Scope of the Report

Europe Cement Industry Segmentation by Category

By Product Type:

• Ordinary Portland Cement
  • OPC 33
  • OPC 43
  • OPC 53
• Portland Pozzolana Cement (PPC)
• Sulphate Resistant Portland Cement
• Blended Cement
• White Cement
• Portland Slag Cement (PSC)
• Super Product Type Cement
• Hydrophobic Portland Cement
• De-carbonated Cement

By End-use:

• Residential and Commercial Building
  • Drainage System
  • Beams and Pillars
  • Stairs
  • Roofs and Walls
  • Foundations
  • Others
• Civic Infrastructure
  • Dams and Ports
  • Roads
  • Bridges
  • Tunnels
  • Culverts and Sewers
  • Power Plants
• Industrial and Marine Construction

By Region:

• Germany
• Italy
• France
• United Kingdom
• Spain
• BENELUX
• Russia
• Rest of Europe